Punjab reduces Vat on furnace oil

The Punjab Cabinet on Wednesday decided to reduce the rate of Vat on furnace oil from 12.5% to 4%.

The Cabinet decision was taken in a meeting, under the chairmanship of Punjab Chief Minister Parkash Singh Badal. He approved to amend the Punjab Value Added Tax Act, 2005.

Decision was also taken to grant ex-post facto approval for allowing subsidy to all categories of consumers for neutralising the impact due to increase in electricity tariff for the year 2007-08.

Badal also approved the summoning of 4th session of 13th Punjab Vidhan Sabha from February 25 to March 19, 2008. Disclosing this here on Wednesday, a spokesman of the Punjab government said that the session would begin with governor's address on February 25 and the budget for the year 2008-09 would be presented on March 11.

The Cabinet also gave a green signal to revise the rate of tax on weekly lotteries from Rs 50,000 to Rs 75,000 per draw in order to raise additional resources for the development of the state. Likewise, it was also decided to raise tax on 2-digit weekly lottery from Rs 25,000 to Rs 50,000 per draw.

The existing rate of tax of Rs 25,000 per draw is very low as compared to other states like Karnataka, Kerala and Maharastra. The revision of rates would fetch additional revenue of Rs 86.80 crore.

The Cabinet also approved to amend section 10 and other relevant sections of the Punjab Panchayati Raj Act 1994 to provide for indirect election to the office of Sarpanches of Gram Panchayats.

The Cabinet also gave a go ahead for transferring the State Institute of Nursing & Paramedical Sciences (SINPS) at Village Badal in Muktsar district to Baba Farid University of Health Sciences, Faridkot.

The Cabinet also approved the annual administrative report for the departments of Health & Family Welfare for the year 2003-04, Local Audit for the year 2004-05 and Town & Country Planning for the year 2005-06.